By Business Insider Reporter
Public-Private Partnership Centre (PPPC) Executive Director, David Kafulila, has defended economic trajectory under President Samia Suluhu Hassan, arguing that the government’s reforms are addressing deep-rooted structural bottlenecks, not just chasing short-term gains.
Speaking during the Cafetalk Tanzania session – an emerging national platform for dialogue among policymakers, journalists and citizens – Mr. Kafulila said the sixth-phase administration had made “transformational gains” in key sectors like agriculture, infrastructure, and energy access.
Citing research from REPOA, a local think tank, Mr. Kafulila noted that halving poverty in Tanzania would require agriculture to grow at 10 percent annually for three consecutive years. When President Samia took office in 2021, the sector was growing at just 2.6 percent.
“It is now at 4.2 percent, and the trajectory is upward,” he stated.
He highlighted key interventions such as expanding irrigation from 560,000 hectares in 2021 to over 900,000 hectares today, with a target of 1.2 million hectares in the near term.
“In the 60 years before 2021, only 500,000 hectares were developed. We’ve added 400,000 hectares in just four years. That’s transformation,” he said.
Mr. Kafulila also pointed to a significant increase in fertiliser subsidies – over TSh700 billion – which has raised usage from 19 to 24 kilogrammes per hectare, helping to boost productivity across farming zones.
Trade, infrastructure and access to services
On trade, the PPP boss reported that Tanzania’s external trade value has nearly doubled, rising from US$17 billion in 2021 to over US$32 billion in 2024, representing an 84 percent growth.
In terms of infrastructure and public service access, Kafulila highlighted several key achievements including electrification of over 2,000 villages within three years, construction of emergency hospitals and improvement of rural roads through TARURA whose budget has ballooned from TSh260 billion to TSh1.06 trillion,
“These aren’t just statistics – they are changes that impact real lives, from farmers getting their goods to market faster, to mothers accessing emergency care closer to home,” Mr. Kafulila said.
He dismissed claims that Tanzania’s economic data is manipulated for donor appeasement, noting that sovereign credit ratings from Fitch, Moody’s, and S&P affirm the country’s standing in international markets. “These institutions assess all major economies. Tanzania can’t influence their verdicts,” he said.
Illicit financial flows still a concern
Earlier in the session, CCM Parents’ Wing chairman, Ally Hapi, warned that Tanzania loses over US$1.83 billion annually to illicit financial flows. He lauded government efforts to expand e-government and cashless transactions – including platforms like M-Pesa, Airtel Money, and Mix by Yass – as essential tools in curbing financial crime.
He also pointed to improved regulatory enforcement by bodies such as the PCCB and highlighted innovations like card-based fare payments on BRT buses as steps toward increased transparency.
Still, he stressed that stronger enforcement mechanisms – including cybercrime units, independent audits, and judiciary oversight – were needed to turn laws into effective action.
“We already have good laws. But laws don’t implement themselves—institutions do,” he said.
Gains not yet equally shared
Opposition leaders welcomed the government’s progress but raised concerns about inclusion, enforcement, and transparency.
CHAUMMA Secretary General, Salumu Mwalimu, acknowledged the improved growth rate – 5.6 percent, with a projection of 6.1 percent – but noted that millions of Tanzanians still live in poverty.
He urged that at least 50 percent of the national budget be allocated to agriculture, arguing that only 1 out of 44 million hectares of arable land is currently cultivated.
ACT-Wazalendo’s Vice Chairman (Mainland), Issihaka Mchinjita, zeroed in on governance.
He questioned the lack of action following revelations by the Controller and Auditor General (CAG), including TSh1.5 trillion in unaccounted funds and TSh389 billion disbursed off-budget to government entities in 2025. “Our problem is not the absence of laws, but the absence of will to enforce them fairly,” he said. “If people can’t demand accountability, trust in institutions erodes.”
